Cantor Fitzgerald initiated MindMed ( NASDAQ: MNMD ) at overweight on the potential of its psychedlic-based candidates to treat mental illnesses.
The firm has a $3 price target (417% upside based on Tuesday's close).
Share are up 9% in Wednesday morning trading.
The company's lead candidate, MM-120, is testing LSD for depression, anxiety, ADHD, and cluster headaches. Phase 2 data readouts for the anxiety and ADHD indications are eyed for 2H 2023.
In earlier stages, MindMed ( MNMD ) is also looking at ibogaine for opioid use disorder and MDMA in healthy subjects.
Analyst Charles Duncan said that LSD could be appealing because of its long duration of activity that "could potentially usher-in a new treatment paradigm in several psychiatric settings."
He added that the company's collaboration with the Liechti lab at University of Basel de-risks the development of MM-120.
Duncan noted that the company has enough cash on hand to support activities through 2024, including completion of the two phase 2 studies.
"We believe MNMD's pipeline is currently underappreciated by investors," he wrote.
Seeking Alpha's Quant Rating views MindMed ( MNMD ) as a strong sell.
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MindMed initiated at overweight at Cantor Fitzgerald; sees 417% upside